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"Sellers were holding back waiting for the dust to settle on Chicago futures," one broker said.
Soybean futures on the Chicago Board of Trade fell sharply following the news with the most active contract down 4.7 percent at $9.89-1/2 a bushel at 1129 GMT.
CBOT soybean meal and soybean oil also fell sharply.
Some players said they believed that in the end prices will come back close to prior levels as the trade dispute should not change the overall tightness in supply.
The International Grains Council has forecast that global soybean consumption will exceed production in both the 2017/18 and 2018/19 seasons.